Spending cut: Indian consumers opting for lower-priced goods

Consumers are increasingly down-trading to lower priced or value products across FMCG electronics and apparel segments, signalling a possible squeeze on monthly household budgets as compared to a year ago.

In rural areas, the share of bulk or high value packs fell 22% among packaged foods while low value packs accounted for 10% more during April-June quarter compared to a year ago, according to a study by sales automation firm Bizom. Among personal and home care products too, the contribution of large packs fell 2.7% while the share of lower-priced products rose by 1-4%. Even in urban India, large packs’ share fell across categories, except in personal care, while small and medium sized packs grew.